Of 80 Canadian oil and gas employers surveyed by recruitment specialists Hays Canada, 23% saw a decrease in permanent headcount in 2013, as project cancellations and low commodity prices compelled many companies to go back to the drawing board and defer hiring plans.

“It wasn’t a bad or negative year, but it didn’t happen as people expected it to happen,” said Jim Fearon, vice-president Western Canada at Hays. “We think 2014 is positioned to be a very busy year — you will see a bit of catch up from the lag of last year.”

In November, Encana Corp. said it would lay off 20% of its workforce, while Talisman Energy Inc. also announced staff cuts early last year. A number of companies slashed capital spending and put projects on hold as Calgary’s boardrooms reined in spending.

“There was an 11-point difference between forecast and real decreases in business activity last year – 7% expected a dip in activity, and yet 18% actually experienced one,” Hays said in its survey.This translated into fewer people being hired for permanent positions.

It’s hardly a crisis. Alberta saw employment surge by 78,000 till November 2013, which kept jobless rates at 4.7% — second lowest in the country after Saskatchewan.

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Strong net inflow of people into the province stoked overall population growth to its fastest annual rate (3.5%) since 1982, according to a report by Royal Bank of Canada.

“We believe that there is scope for growth to accelerate modestly, owing in part to an anticipated ramp-up in capital investment in the oil sands and increasing crude oil production,” Robert Huge, senior economist at RBC said in the report.

Companies surveyed by Hays seem to be evenly divided on prospects for the New Year. Exactly half of employers expect to increase permanent staff this year, while another 50% either expect hirings to decrease or stay the same.

With costs an ongoing issue, salary-hike expectations are also tempered. Eighty-nine per cent of employers surveyed said they expect to raise staff salaries by at least 3% over the next 12 months, which is slightly lower than expectations in previous years.

“It was probably reflective of the year companies had in terms of profits and growth. In a really good year, you might hear of salaries going up 5% or more,” Mr. Fearon said.

This year, Canadian oil and gas will see the structural problem of skills shortage return to the fore.

“Sixty-six per cent of the companies say there is a moderate to significant skill shortage and I expect that statistic to become more of a problem for companies this year,” Mr Fearon said. “As things picks up and get busier, the more projects move ahead into execution and major energineering phases, I would expect that statistic to rise.”

Lack of LNG-specific skills is another looming threat. Companies are sending Canadian hires to LNG hotspots such as Australia, South-east Asia and the U.K. to gain LNG experience or are looking to hire from those regions as they prepare for a much-anticipated LNG-driven hiring boom on British Columbia’s West Coast.

“It’s well-recognized that Canada has limited LNG skills. Companies are working out how they are going to source [personnel] one way or another,” Mr. Fearon said.

The RBC’s Mr. Hughes said the larger direct economic effect of LNG construction is likely to begin in 2015, but “we expect that preparatory work and the boost to confidence in the province from these projects going ahead will help spur job creation, and lift business and household spending in 2014.”